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BIGHEART

Mobile advertising with a charitable twist

With the BIGHEART app you donate ~100 SEK to charity every month by seeing ads on your phone's lock screen. The ads generate money to your account, which you donate to charity of choice. Meanwhile, advertisers get access to an attractive communication surface and contribute to a good cause. 80% of the revenue from ad sales is donated to charity, while 20% stays within BIGHEART.

During 2016, a simplified version was tested with 1.000 users, 85 advertisers and >50.000 SEK to charity. With extensive user feedback and market knowledge we are now ready for full commercialization and exponential growth.

Investor proposal

What if you could be shareholder in a company that both will provide multiple returns on invested capital AND significantly contributes to making the world a better place? Now you can!

We are addressing a 2 trillion SEK market opportunity, which is a 10 times larger market than the global music industry that Spotify and Apple are fighting about.

We have the initial proof of concept and the skills and market timing to succeed.

Being a shareholder in BIGHEART is expected to provide a minimum ROI of 500% within maximum five years. See financial forecast and exit strategies for details.

Product

The problem this product solves


In Sweden the average monthly donations to charity is just 52 SEK / month per person.

According to Frivillighetsorganisationernas Insamlingsråd (frii.se) there are three main challenges that limits the private donations:
  1. Many people perceive that they can't afford to donate to charity, although they have a strong will to do so.
  2. There is a lack of transparency and feedback on what the donated money is used for.
  3. It takes time and effort to handle donations to various organizations.

How the product solves it

BIGHEART solves all three of these challenges and will greatly increase the private donations to charity and at the same time provide expontential returns to our shareholders.

  1. Users can donate around 100 SEK to charity every month without spending their own money.
  2. The app is also a great platform for charities to communicate with their donors and report back with information on how the money was used.
  3. It is very easy to administrate the charity portfolio and change between organisations depending on what you feel is important at the time, backed up with clear information for decision making.

Product features

  • The BIGHEART smartphone app replaces the lock screen picture with relevant ads.
  • The user can decide when, where, under which circumstances and what type of ads will be displayed.
  • 80% of the advertising revenue go to a charity organization selected by the user.
  • Exact monthly contribution varies with user habits, but most users in our pilot test are collecting >100 SEK/month to charity this way.
  • The user can easily administrate which charities to fund and receive instant feedback via the app how the money is being used.
  • Gamification and social features to enable peer to peer recruiting is under development.

Product use cases

BIGHEART creates a win-win-win situation where
  1. Individuals can collect money to charity without paying from their own wallet.
  2. Charity organizations can receive significant donations, while BIGHEART also works as a communication platform between charity organizations and their donors. The organizations report back to the user with encouraging news and feedback on how their money is used.
  3. Advertisers get access to an attractive advertising space with the ability to personalize and create targeted and relevant offers. At the same time advertisers who choose BIGHEART are proudly converting 80% of their marketing budget into CSR-budget.

Team

Jakob Gelberg avatar
Jakob Gelberg CEO
Most recently Jakob has been responsible for the visual graphics, UI/UX and growth hacking of an app launched by a company listed on Nasdaq Stockholm. The project has been acknowledged by IDG, Gartner and Forbes and has been rewarded with prestigious awards. He has also been consulting at a renowned ... See more
Most recently Jakob has been responsible for the visual graphics, UI/UX and growth hacking of an app launched by a company listed on Nasdaq Stockholm. The project has been acknowledged by IDG, Gartner and Forbes and has been rewarded with prestigious awards. He has also been consulting at a renowned innovation agency for two years working with both digital and physical products and services. Jakob has been a learning-by-doing entrepreneur since early childhood and has founded and been involved in various companies over the past years. His most developed area of expertise is within marketing, branding and visual identity but has during the past year developed highly valued knowledge within growth hacking. Jakob holds a degree in design from the University of the Arts in London and has been working with web and graphic design in many years. He is the creator behind BIGHEART’s visual brand identity. Jakob is a true solution-oriented problem solver. A clear example of that was when he bought an old sailboat in Miami without knowing how to sail. He then had to disassemble the big boat engine, fix it and put it together in only two weeks. Before that he barely knew what an engine looked like. Later Jakob thought himself to sail and now it’s his biggest passion in life. The idea of BIGHEART originated from Jakob and ever since partnering up with Robert, whose experience was crucial for the business, he has spent most of his time awake running the company. Jakob is responsible for the daily operations such as managing the development work, marketing, growth hacking and coaching the rest of the big hearted team. See less
Robert Sabelström avatar
Robert Sabelström Chairman of the Board
Robert started building expertise in digital business models already in 2005, when founding unitedsurfcamps.com, which he is still part-owner of. In parallel to developing his own business, Robert has built a career as an adviser and “entrepreneur for hire”, both as Consultant, as Deputy MD for a company with 400 ... See more
Robert started building expertise in digital business models already in 2005, when founding unitedsurfcamps.com, which he is still part-owner of. In parallel to developing his own business, Robert has built a career as an adviser and “entrepreneur for hire”, both as Consultant, as Deputy MD for a company with 400 employees and as an Angel investor. Currently, Robert's main job is to lead Accenture’s Digital Marketing practice in Sweden, where he is helping large enterprises master the skills he is self-taught in as a digital entrepreneur. In 2015 Robert released the book 'HOT TRAFFIC - How to start an Online business with zero investment', summarizing his 10+ years learning from digital start-ups. So far the book has sold 3000+ copies on Amazon. It was after reading this book that Jakob Gelberg contacted Robert to do an interview in the pre-study of creating BIGHEART. When realizing the huge potential with BIGHEART, Robert offered to fund the first 18 months MVP phase as angel investor and coFounder. Robert acts as Chairman of the board for BIGHEART. He is very operationally involved and coach Jakob and the core team almost on daily basis. He holds a Master of Science in Industrial Engineering and Management from Linköping Institute of Technology, and also a Master degree in Financial Economics from Linköping University. Robert's strong leadership skills also originate from prior experiences in Swedish Marine Corps and working as Teacher. See less
Henri Thunberg avatar
Henri Thunberg Ads Manager
To join BIGHEART Henri quit his position as Business Manager at IT company Atea, where he had launched the Smartphone as a Service offering. Experiences from business development at Procter & Gamble and charity organization sales gives him the right skillset to establish deals with a focus on the greater ... See more
To join BIGHEART Henri quit his position as Business Manager at IT company Atea, where he had launched the Smartphone as a Service offering. Experiences from business development at Procter & Gamble and charity organization sales gives him the right skillset to establish deals with a focus on the greater good without losing the business perspective. Currently Henri is leading the project to automate BIGHEART ad sales by making them programmatic, making sure that the right partnerships are in place to maximize advertising revenue. Henri holds a bachelor's degree in Economics and Management from Bocconi University and speaks six languages after living in six different countries in the past six years. See less
Ebba Rundquist avatar
Ebba Rundquist Users and Charity Manager
Currently studying the 4th year of Industrial Engineering and Management at Lund University. Ebba started working with us in May 2016 and has since then been a highly valued team member. At first she was working with high prioritized prospects of advertisers delivering impressive results and conversion rate. Ebba’s main ... See more
Currently studying the 4th year of Industrial Engineering and Management at Lund University. Ebba started working with us in May 2016 and has since then been a highly valued team member. At first she was working with high prioritized prospects of advertisers delivering impressive results and conversion rate. Ebba’s main responsibility is developing marketing strategies and managing users- and charity relations. See less
Oskar Månsson avatar
Oskar Månsson Lead Developer
Associate degree in Programming and Game Design from Uppsala University. Self-taught developer from an early age with steep learning curve and eager to master new technologies. Oskar is responsible for our technical solution with the goal of developing BIGHEART into a lovable application and building a great technical team to ... See more
Associate degree in Programming and Game Design from Uppsala University. Self-taught developer from an early age with steep learning curve and eager to master new technologies. Oskar is responsible for our technical solution with the goal of developing BIGHEART into a lovable application and building a great technical team to prepare us for future challenges. Working alongside with developers from our tech partners. See less

Market

Target Market

According to eMarketer, the global market for mobile advertising will triple until 2020 and reach a turnover of incredible 20 trillion SEK, which is a 10 times larger market than the global music industry that Spotify and Apple are fighting about.

In 2020 there will be 6 billion smartphones in the world. Our 2020 target is to reach 0,01 % of these, meaning 600 000 users.
 
An important market trend is the accelerating usage of “ad blockers”, which is already installed by 12% of all users. This will further increase the attractiveness of unblocked ad space, such as BIGHEART.

Competitive landscape

We have identified two key competitors that are using the lock screen to show ads:

SlideJoy
  • Launched in 2014.
  • Has reached >1 million registered users.
  • Focused on the USA, but possible to download the app internationally.
  • Redeem collected "carats" for gift cards at Starbucks, Amazon, PayPal etc.
  • Can choose option to donate to charity, but it is not their core.

HoneyScreen
  • Launched in 2013.
  • Lock screen marketing with >8 million registered users.
  • Available in South Korea, Japan and Taiwan.
  • Giving user cashback in imaginary currency.
  • No option for charity donations.

Unique differentiator from competitors

Both our key competitors have chosen as business model to give benefits to the users, rather than as a collection to charity.

The main reasons we have chosen to go for the full charity positioning is:
  • It feels good!
  • That 50-100 SEK per month is not a lot of money to receive as a Starbucks check (1-2 coffees).
  • However it is a LOT of money to give to charity - more than what the average Swedish citizen donates today.
  • Better potential to get the story out (e.g. to get airtime on TV, common communication with charity organizations etc.)

Company revenue streams

Advertisers are today paying 30 - 300 SEK to get 1000 display ad exposures on a mobile phone. The price varies with ad format, where the ad space is located and how many segmenation parameters (e.g. Gender + geographic location) that is used.

On average a smartphone user sees the lock screen 80 times per day. BIGHEART has a business model where 80% of the ad revenue goes charity, while 20% becomes gross profit for BIGHEART. In our pilot test the average revenue per user is >100 SEK/month, meaning >20 SEK/month goes to BIGHEART.

Product/service distribution

We have identified five key channels for user acquisition, whereof three already have been
verified on a small scale and can be accelerated:
1. Digital Marketing via Facebook, Google etc. VERIFIED with an attractive CPA of < 50 SEK per download.
2. Ambassador program - VERIFIED with student ambassadors in 2 Swedish cities (Lund and Linköping).
3. Partnerships with Charities - VERIFIED with pilot partnership with PLAN International.
4. Event partnerships and PR - TO BE VERIFIED, initial dialogues are very positive.
5. Peer2Peer Marketing - TO BE VERIFIED, awaiting full launch of iPhone version.

Execution

Previous milestones/traction

  • October 2015 - BIGHEART is founded.
  • November 2015 - First 10 advertisers onboarded.
  • December 2015 - First alpha version for Android released.
  • January 2016 - First MVP for Android released to the public.
  • April 2016 - First 10 000 SEK collected to charity.
  • July 2016 - Reached 50 onboarded advertisers.
  • August 2016 - Extensive user feedback collected via >100 user interviews.
  • December 2016 - First financial year closing with >50 000 SEK collected to charity.
  • January 2017 - First alpha version for Iphone released.
  • February 2017 - First meetings with potential Programmatic Ad Exchange partners conducted.

Next key objectives

  • April 2017- Crowdfunding campaign successfully closed.
  • May 2017 - First MVP for iPhone released to the public.
  • June 2017 - BIGHEART's ad inventory connected to a programmatic ad exchange.
  • August 2017 - Version 2.0 released for Android and iPhone simultaneously, including gamification, social features and other key features to further improve user retention and peer2peer user recruiting.
  • September 2017 - National marketing campaign to boost user recruitment, based on validated marketing experiments.
  • December 2017 - Reach 10 000 registered users in Sweden.
  • July 2018 - Enter next geographic market (e.g. UK).

Previous Financing

BIGHEART was founded in October 2015 and has so far been funded privately by the founders.

In total >1 million SEK has been invested in the company:
  • 150 kSEK seed equity
  • 250 kSEK innovation grants
  • 400 kSEK partner discounts in app development (>800 hours with 500 SEK discount)
  • 500 kSEK Non paid Core team work hours ( >5000 hours, without minimal wage of 100 SEK/hour)

Partnerships

BIGHEART is currently engaged in three type of partnerships:
  1. Partnerships with charity organizations - The partnership is based on that BIGHEART users can read about and select the charity organisation as benefactor directly in the BIGHEART app, while the charity organization helps to promote BIGHEART in their network.
  2. Tech partnerships - For advanced tech development we have partnerships in place with two cutting edge mobile tech agencies, Dynamo and Prototyp Stockholm, who both support BIGHEART with significant discounts.
  3. Business advisory partnerships - We are supported by Almi, Connect, Lund University Innovation and THINK Accelerate, to ensure commercial success.

Use of funds

The funding will be used for three key initiatives:
  1. Tech development (50%) - Both for Android and iPhone, based on the profound user feedback we have collected. This will ensure loyal users and viral growth.
  2. Platform for scalable ad sales (25%) - We will connect our advertising space to programmatic ad exchanges. This will enable us to quickly launch BIGHEART on new markets without building up local sales forces.
  3. Marketing (25%) - To reach break-even in Sweden we need to reach 10 000 users. So far we have focused on marketing experiments, which we now are ready to scale.

Industry Certifications/Awards

BIGHEART has been recognized for its innovative approach to make the world a better place. A few examples:
  • Awarded with a pre-study grant from Vinnova.
  • Awarded with a grant for social entrepreneurship from the City of Lund.
  • Awarded with a verification grant from Lund University Innovation.
  • Awarded with an innovation grant from Almi.
  • Accepted to the acknowledged startup accelerator THINK Accelerate.
  • OpenHack - Case contributor in Coding for Humanity hackaton.

Return on Investment

We see three main exit opportunities for our shareholders:
  1. Acquisition - BIGHEART is securing an extremely effective ad space and will be an attractive acquisition target for media companies who need to manage the shift from TV and desktop to mobile.
  2. IPO - BIGHEART has big appeal for the public and therefore next step could be to enter the open stock exchange.
  3. Repurchase - If we decide to keep operating BIGHEART as an independent company, the founders offer to repurchase stocks for a minimum x5 valuation.

At least one of the above exit opportunities will be activated within 5 years.

Risk Analysis

We have identified four "leap of faith" assumptions:
  1. New users can be recruited at decent cost.
  2. Recruited users will enjoy the app so much that they keep using it.
  3. Users will enjoy the app so much that they pursue their friends to try it.
  4. We will be able to sell enough ad space at decent price to keep users happy and provide sufficient margin to the company.

Assumptions 1&2 have already been verified via our "Minimum Viable Product". Assumptions 3&4 are key focus to verify during the next 18 months phase "Minimum Viable Business", which we now seek funding for.